15
Your guide to the: The Spray Foam Industry

The Guide to the Spray Foam Insulation Business

Embed Size (px)

DESCRIPTION

Take an in-depth look inside the workings of a spray foam business with topics such as: what is spray polyurethane foam, inside the numbers of a sample business, r-value myth, and much more.

Citation preview

Page 1: The Guide to the Spray Foam Insulation Business

Your guide to the:

The Spray Foam Industry

Page 2: The Guide to the Spray Foam Insulation Business
Page 3: The Guide to the Spray Foam Insulation Business

What is Spray Polyurethane Foam?Spray Polyurethane Foam (SPF) is a spray-applied insulation found in all types of residential housing and com-mercial buildings. SPF is an insulating plastic that is installed as a liquid and then expands up to 100 times its original volume, creating an unparalleled air-tight seal. Spray polyurethane foam is found in multiple forms which allow it to be applied in many applications. SPF may be formulated to achieve a variety of final forms, from a semi-rigid insulation foam that is soft to the touch to a high density roofing foam that is resistant to foot traffic and water. SPF requires a collection of specialized equipment for its application as well as proper training to ensure ideal performance and results.

SPF’s diversity makes it the leader in insulating building products. SPF achieves high R-Values while providing a seamless air barrier and giving strong support to the moisture control of a structure. For roofing, spray foam insulates and negates thermal bridging through fasteners or gaps in the roof deck while providing a monolithic, long-lasting roofing system that has a life that can reach well beyond 10 to 15 years. As a result, SPF can be used in a wide variety of applications, including, but not limited to:

•Residentialandcommercialinsulationinwalls,ceilings,atticsandbasements

•Roofing

•Airbarriers

•Industrialinsulationsofpipesandtanks,coldstoragefacilities,freezers,walk-incoolers,and

climatecontrolledstructuressuchasproducestorageandcleanrooms

•Flotationforboats,ships,barges,floatingdocks,andotherwaterbornestructures

Page 4: The Guide to the Spray Foam Insulation Business

SprayFoamInsulation vs.ConventionalInsulationWhen faced with the decision of Spray Polyurethane Foam versus the more traditional methods of insulation, the right choice is clear and simple. SPF is the product that outperforms all others. It provides the benefits demanded by the consumer in a single building material that can replace the need for up to a dozen other products, making SPF a guaranteed winner.

R-value is a measure of resistance to heat flow, but it only measures resistance to conduction. Conduction (heat transfer through solid molecules) is only responsible for 20% of a building’s heat loss, while convection (heat transfer by air molecules moving from hot to cold areas) is responsible for the other 80%. Conventional fiber insulations resist heat loss by conduction, but only attempt to slow down convection currents by trap-ping dormant air molecules. The air is free to move within and through the insulation, which decreases the insulation value and can lead to damaging moisture problems. Spray foam insulations do no allow air to enter, which stops heat loss convection. 1/4” of foam will stop 99% of heat loss by convection, and 3” of foam will stop 95% of heat loss by conduction.

TheR-ValueMyth

Page 5: The Guide to the Spray Foam Insulation Business

Open-cellfoam Closed-cellfoam Fiberglass Cellulose

R-value 3.7 6.6 3.2 4.0

Providesaseamlessairbarrier

Perfectfiteverytime

PotentialfordownsizedHVAC

Stopsairbornemoisture

Doesn’t settle or sag over time

NoHFAs,HCFCs,orHFCsused

Containsnoformaldehyde

Zeroharmfulemissions

JobProfile• Utility bills

- $2,239 electric- $477 gas- $2,716 total

• Monthly average utilities- $247

• Average utility prices- Gas $0.95 per therm- Electric $0.17 per kWH

• Utility bills- $1,107 electric- $306 gas- $1,413 total

• Monthly average utilities- $128

• Average utility prices- Gas $0.93 per therm- Electric $0.13 per kWH

TraditionallyInsulatedHome Closed-cellsprayfoaminsulated

* The above data is sourced from Honeywell

Page 6: The Guide to the Spray Foam Insulation Business

Open-cell spray foam is spray-applied as a liquid, expanding to 100 times its volume. Once applied, the product cures within seconds, filling every crack and gap. The tiny cells expand at such a rapid rate that they break apart and fill with air, creating a soft, almost spongy end product. The rapid expansion of open-cell foam creates a perfect air-tight seal using less material than closed-cell foam, thereby creating a lower cost per R-Value.

Open-cell

CommonApplications

sprayfoaminsulation

• R-Value of 3.7 per inch• Lowest cost among all types of foam• Excellent noise reduction and sound

control

• Stud Walls• Attics• Air Sealing• Sound Control

TypesofSprayFoamInsulation

Page 7: The Guide to the Spray Foam Insulation Business

Closed-cell spray foam insulation is a more slowly expanding product, resulting in an expansion of approxi-mately 40 times its initial volume. The closed-cell nature of this type of foam creates a tightly packed cell structure that is more rigid and dense than open-cell foam, giving closed-cell foam a higher R-Value per inch. With closed-cell being four times the density of open-cell foam, the cost per R-Value is higher for closed-cell foam than that of open-cell foam insulation.

CommonApplications

sprayfoaminsulation

Closed-cell

• Attics, Basements and Crawl Spaces• Stud and Exterior Walls• Metal Buildings• High Moisture Areas

• R-Value of 6.6 per inch• Enhances structural integrity• Qualifies as vapor retarder at 2”

Page 8: The Guide to the Spray Foam Insulation Business

SprayFoamBenefits

Whether it is whole home insulations, retro-fitting an existing attic or spray-ing foam in a basement, all solutions have a dramatic effect on your monthly energy consumption. Typical applications may see a result of 50% reduction in heating and cooling costs. Important to note, is not only will a great re-duction in energy consumption be produced, a vast reduction in your carbon emissions will also be seen in correspondence with the reduction of energy useage.

Spray foam insulation may be the best thing for the environment in an array of environmentally-friendly products. It emits no CO2 of its own while it reduces heating and cooling related emissions by about 50% for new con-structions and by even more in certain retrofit situations. Foam insulation will last for the life of the building, and will deliver peak performance. No formaldehyde, no ozone-depleting ingredients and no emissions of any kind - environmentally friendly.

Unlike more traditional methods of insulation in today’s markets, spray foam insulation is free of all HFAs, HCFCs, HFCs, and formaldehyde. Once spray foam has cured and is in place, the final product is chemically dead and contains no health risks.

Sound waves are transmitted by different media, including air. The most drastic noise dampening occurs when the home or building is completely air-tight. The super soft nature of open cell foam insulation not only provides an extraordinary air seal but also absorbs secondary reverberations for excellent sound dampening properties.

According to the EPA (Environmental Protection Agency), indoor air quality is a major concern. Spray foam insulation battles this problem in two ways. Foam insulation is devoid of emissions and contaminants. It also improves the situation by nearly eliminating all unwanted moisture intrusion and related mold issues. This is also good news for people suffering from asthma, aller-gies and other respiratory ailments.

Savings of 50% are common for a well built and properly insulated home, making spray foam the most efficient choice of insulation available to consumers. Spray foam is the solution to many of today’s consumer demands. When compared to its competing products, spray foam sells itself.

Meeting the needs and demands of home owners and builders has never been as easy as it is with spray foam insulation. The list of benefits for each product is not only diverse, but each benefit delivered is also one that no other product can provide at the same level.

HomeOwnerBenefits

EnergyEfficiency

EnvironmentalBenefits

NoHealthIssues

Sound Control

IndoorAirQuality

Page 9: The Guide to the Spray Foam Insulation Business

When making the choice to use spray foam insulation in your building proj-ects, you will find yourself with a new sense of freedom. No longer will the insulation in a building be a roadblock. With spray foam insulation, vaulted ceilings and varying substrates are no longer worries.

The multiple benefits of open and closed cell foams gives you the luxury to use one product to solve multiple concerns from a home owner or builder. Each type of foam, open and closed cell, comes with a number of inherent benefits such as sound control, vapor barriers and structural integrity that can not be found in traditional insulation methods. Spray foam can reduce your overall labor and material costs with its multifaceted characteristics.

Unlike more traditional methods of insulation in today’s markets, spray foam insulation is free of all HFAs, HCFCs, HFCs and formaldehyde. In addi-tion to being a chemically dead product once cured, spray foam insulation is one of the most effective methods for preventing mold in homes, giving you the comfort of knowing you’ve built a healthy and completely sustain-able product for the life of the structure.

Closed-cell spray foam insulation is the only type of insulation that is actu-ally a FEMA approved vapor retarder. In addition, the rigid nature of the product adds tremendous strength to all types of homes and buildings alike. One product can provide flood protection, prevent wind damage and uplift troubles, as well as being the most efficient, environmentally friendly op-tion for insulation available today.

Choose to use either type of spray foam product and leave your building knowing that you can count on your insulation never settling, never sagging, and performing at the same high level from day one onward.

IncreasedFlexibility

SimplifiedConstruction

HealthyLiving

StructuralEnhancement

LifetimePerformance

BuilderBenefits

Page 10: The Guide to the Spray Foam Insulation Business

Starting your spray foaminsulationbusiness

Diversity

Knowledge

Experience

Paratus gives new business owners unparalleled options when getting started in the spray foam business. We provide a wide range of turnkey solutions. With several different configurations our line of spray foam rigs is the most diverse and comprehensive selection. Paratus also provides a complete range of materials from foam insulation and roofing foam, to silicones, coatings and polyureas. A relationship with Paratus provides your business with the potential to scale into all the demands you may face.

The Paratus sales team provides you with the most complete set of experts to ensure that your purchase is the right solution for you and your future. Our sales team consists of professionals with backgrounds in engineer-ing, financing, spray foam application, and customer service. Our mission is to guide your new company through a pleasurable sales process.

Choosing to let Paratus help you build your business is a wise first step. Because Paratus was started as a spray foam application company, we have experience being in the field, obtaining jobs, working with the equipment and rigs, and troubleshooting. That experience will be passed on to you not only during the development of your company, but also throughout it’s future.

Page 11: The Guide to the Spray Foam Insulation Business

Starting your spray foaminsulationbusiness

No surprises, no hidden costs. Paratus provides total turnkey solutions with the industry’s shortest lead times throughout our family of spray foam rigs. Each rig from Paratus is fully customizable to meet every specific need you may have. Our stock configurations provide all that you will need to get started.

Whatarethecostsofstartingupyourowncompany?

TheXTR1FoamRig TheXTR2FoamRig TheXTR3FoamRig

Page 12: The Guide to the Spray Foam Insulation Business

TypeofFoam WeightPerSet(lbs)

YieldPerSet(board feet)

R-Value(per inch)

ThicknessperR-13(inches)

YieldsinsqftofR-13

open-cell 1,000 15,000 3.7 3.5 4,285

closed-cell 1,051 4,400 6.3 2.1 2,095

Area TypeofFoam

CoverageArea

DoorsandWin-dows

RequiredR-Value

AverageThickness

AppliedBoardFeet

Require-mentinlbs

Walls open-cell 2400 20% R-13 3.5 6,720 448

Attic open-cell 2400 n/a R-30 8.1 19,440 1,296

Basement closed-cell 1560 n/a R-13 2.0 3,120 709

Totals open-cell 1,744 lbs 1.74 sets

Insidethenumbers

TypicalFamilyHome

Page 13: The Guide to the Spray Foam Insulation Business

ModelBusinessPlan

First Year Second Year

Total Revenues 100% 100%

Material Costs 44% 45%

Labor (3 man crew) 22% 12%

Fuel & Accessories 2% 1%

Gross Profit 32% 42%

Sales Commission 10% 10%

Insurance & Taxes 1.5% 1.5%

Marketing 5% 3%

Earnings After Taxes 15.5% 27.5%

The above business model outline is one of many possible scenarios. There are many variables that can affect the outcome of your particular business model. It is also assumed that all aspects of marketing/advertising, training, and other standard business practices are performed by the busi-ness owner.

Take a look inside the expected structure of a standard spray foam insulation company through a sample snapshot of a model Business Plan. Working with Paratus gives new business owners a fast track toward success. Paratus gives you the benefit of our experience to help you and your new business meet and exceed many of your expectations.

GoingaboveandbeyondwhatisexpectedParatus has never settled for what is commonly accepted as the norm. We have a relentless drive for growth and development. Taking on a relationship with Paratus gives you and your business the benefit of having a business partner that is always striving to develop and grow, which can result in similar growth for your company.

Page 14: The Guide to the Spray Foam Insulation Business

1

2

3

4

5

Keystoestablishingasprayfoambusiness

Partnership

Purchase

Education

Support

Growth

Partner with Paratus and experience a complete team approach that strives to attain the best results for you and your business. Choosing to start your business with Paratus gives you the most di-verse selection of equipment needed for your company’s start-up.

Paratus’s seven standard configurations of spray rigs are by far the largest line-up available to you from the industry. Paratus provides the fastest response times, not only during the sales process, but through technical and application support as well. You will receive the most aggressive pricing, access to application specialists, and multiple sources for financing with Paratus.

For many years, Paratus has provided one of the most comprehen-sive training programs available to those new to the spray foam industry. Once the purchase process has been completed with Paratus, you will be invited to a free two-day training session at our Foam School. Our training facility covers aspects of sales, job costing, marketing, technical maintenance, and application of the spray foam products.

Paratus provides top-level dedicated support through many channels: application specialists with years of on-the-job experience, multiple service centers throughout the country, and mechanical technicians with advanced diagnostic training. Paratus works for you and your business with access to cell phone support and extended weekday and weekend hours.

“Your business realized” is not just a slogan, it is the way Paratus structures its approach on a daily basis. Multiple business rela-tionships are continually being pursued by Paratus to help extend and grow your business. Through our relationship with ECO+, Pa-ratus can help your new business by providing leads to guide your path as you venture into the spray foam industry.